New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Macroeconomics Week 1 Notes

by: Morgan Owens

Macroeconomics Week 1 Notes ECON 104

Marketplace > George Mason University > Economcs > ECON 104 > Macroeconomics Week 1 Notes
Morgan Owens
GPA 3.5

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These Notes cover what was talked about in the first 2 classes.
Stephen Gillepsie
Class Notes
25 ?




Popular in Macroeconomics

Popular in Economcs

This 4 page Class Notes was uploaded by Morgan Owens on Thursday January 21, 2016. The Class Notes belongs to ECON 104 at George Mason University taught by Stephen Gillepsie in Summer 2015. Since its upload, it has received 214 views. For similar materials see Macroeconomics in Economcs at George Mason University.

Similar to ECON 104 at Mason


Reviews for Macroeconomics Week 1 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/21/16
Macroeconomics Week 1 Notes: 1/21/16 6 principles: 1. People respond to incentives- people want what makes the feel good and avoid what makes them feel bad. Biggest incentive is cost. 2. There is no such thing as a free lunch- There is always an opportunity cost for everything, it doesn’t have to be a dollar amount. 3. No thing is just one thing- There is always at least 2 sides. For example: buyer vs. seller 4. The law of unanticipated influences- Any decision you make has a consequence you haven’t thought of yet. Small changes can lead to huge changes later on. 5. The law of unintended consequences- There is always going to be a consequence that what not intended. 6. No one is, and no over ever can be, in complete control. Differences between Macro and Micro Micro- the study of economics on an individual, group or company level Macro- the study of national economics, size of effects are really hard to predict in advanced and measure. * Small differences in models can lead to large differences in appropriate policy Sometimes very small changes in the economic model can lead to large differences in the impact of the policy. Thus different economist using different models can come up with different predictions about what will happen. There are also winner and losers in Macroeconomics Winners are those who benefit from a change and losers are those who don’t benefit. Ex: large decrease in the price of oil, winners are those who have cars and need gas for your car because price went down. But company in Texas are losers because their income decreased. Economic Models: Economic models: deliberate simplification of reality. Allows us to zero in on factors that are thought to be most important. *It lets us see a forest instead of a million trees. - By choice models are not realistic - Economist are very criticized because there models aren’t used in real world behavior. The economist models are helpful to understanding the real world but doesn’t necessarily have to mimic the real world. * The predictions we draw from an economic model are always true meaning they are logically true. The importance of the models is if they help us understand real world behavior. - Ceteris Paribus: all else things stay the same - Models are all going to concern aggregate behavior rather than regular behavior Production possibilities Simplifying model: a model of a society that only produces 2 things Guns Butter All production resources go to butter---------------------------------------------0--- 500 200 400 275 300 Varity of making guns and butter--------------------------------------- 340 200 380 100 400 0 All production resources go to guns-------------------------------------------------  When you transfer the chart to the graph and connect the dots, you then can see all the possible combinations of guns and butter, along with the combinations that are inside and outside the curve.  outside the curve- They are considered infeasible – unable to produce  Inside the line= feasible but inefficient. All the points that fall on the line = feasible and efficiently producing products. Economic concepts: Scarcity- not all combination are possible, short of supply Opportunity cost- what you give up when you chose to make one more unit of something else. Ex: the cost of 1 more gun is less butter Efficiency: points on the production possibility curve where all resources are being used in the most efficient way - Points on the outside are infeasible -Points on the inside are possible but resources aren’t being used efficiently Normative preferences: Notes: - no society ever uses all of their resources efficiently People, factories and other resources would be worn out if they were used on the production curve. Production possibility curves: Always concave because of the Law of Increasing Cost - The higher opportunity cost - The more you have of 1 good makes it increasingly expensive to produce 1 more unit


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.